BackaBuddy and The People’s Fund are two of the best-known crowdfunding names in South Africa, and they are often compared even though they solve completely different problems. One raises donations for a cause. The other raises investor money to fund a business order. This comparison sets out how each works, so you can tell quickly which one, if either, fits your project. For the wider list of platforms, see our directory of crowdfunding platforms in South Africa.
How BackaBuddy works
BackaBuddy is a donation platform. You create a campaign page, share it, and people give money without expecting anything back. It is used for medical costs, education, emergencies, community projects and non-profits. Since 2025 it has charged no platform fee, so the main cost is payment processing.
Best for: causes, social projects and community initiatives with a story people want to support.
How The People’s Fund works
The People’s Fund finances purchase orders. A black-owned small business that has won an order from a government or corporate buyer applies for funding to deliver it. Individual investors fund the deal and share in the profit when the buyer pays. It is a commercial transaction, assessed on the order, the margin and the buyer.
Best for: suppliers with a confirmed order and a healthy margin who need capital to deliver it.
Side by side
| BackaBuddy | The People’s Fund | |
|---|---|---|
| What backers get | Nothing: it is a donation | A share of the deal’s profit |
| Who it suits | Causes, individuals, NPOs | Black-owned businesses with confirmed orders |
| What you need | A compelling story and a network to share it | A purchase order, a viable margin and a creditworthy buyer |
| Repayment | None | Repaid from the buyer’s payment |
When neither fits
If you are launching a product and want backers to pre-order it, a rewards platform suits you better. If you need ongoing working capital rather than money for one order, look at business loans instead.
Frequently asked questions
Can a business raise money on BackaBuddy?
It is built for causes and personal needs rather than commercial fundraising, so donors respond best to social or community projects.
Do I have to repay The People’s Fund?
Yes. The funding is repaid, with the investors’ share of profit, when your client pays for the order.
Is The People’s Fund a loan?
It works on profit-sharing rather than interest, but the money is repaid from the order proceeds.
Which is faster?
A donation campaign can start immediately. Purchase-order funding requires the deal to be assessed first.
How do I choose a platform more generally?
See our guide on how to choose a crowdfunding platform.
Originally published in October 2021. Updated September 2026.
